The nature and administration of claims in the Ghanaian Construction Industry

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The study was to discover the nature of claim administration in Ghana’s construction industry with the rationale of bringing out the appropriate approach to claim administration. Contractual claim requires a proper procedure for claim preparation and administration in construction industry in order to make contractors as well as clients obtain value for money. The methodology adopted for the study is a survey approach were contractors in the construction industry was interviewed using structured and unstructured questionnaires. The responses were analyzed using SPSS which were presented in tables and graphs. The contract administration discoveries involve late notification of claim, and inability to agree on causes of claim. The leading mode of dispute resolution practice in Ghana is mediation and conciliation. The source of information in contract administration is minutes of meetings, clients’ correspondents and letters. The study shows that in order to obtain smooth administration of claims, the contractor, with the assistance of the technical men, should be able to identify the claim, inform the client immediately and substantiate it and the client should be able to confirm it and give the necessary solution to it. From the study, it was discovered that the leading cause of claim in Ghana is delay as caused by clients which was followed by lack of adequate documentation of claim by some contractors which most of the time bring about disputes in determination of claim since evidence cannot be agreed upon unless otherwise proven through proper documentation. Delays and modification of design through late instruction takes more than 50% of the causes of claims by contractors. It is recommended that consultants in collaboration with the clients should analyze their needs critically before the design in order to avoid the incessant modifications. Also, the study recommends that clients, after notification by the contractors, should respond immediately within reasonable time in order to avert delays. The contractors as well as clients should document all contractors’ claims in order to minimize the delays in contractual claims administration.
A project report presented in partial fulfilment of the requirements for a degree of Master of Science in Construction Management